Department of Natural Resources INVITATION FOR BIDS May 15, 2018 Sealed bids will be received by the Department of Natural Resources for timber stumpage on the following properties: Governor Knowles State Forest, Ice Age Trail, Totogatic Wild River Area, Sawyer Creek and Sand Creek Fisheries Areas, and Crex Meadows, Fish Lake, and Namekagon Barrens Wildlife Areas. Bids may be hand delivered or mailed to the following: TIMBER SALE BID (tract #, sale name) Wisconsin DNR 325 W State Rd 70 Grantsburg, WI 54840 Bids will be opened on Tuesday, May 15, 2018 at 11:00 a.m. at 325 W. State Road 70 in Grantsburg, Wisconsin. No bid will be accepted after the date and time of bid opening. The Department of Natural Resources reserves the right to reject any or all bids. Bidding process 1. Bids will be made by species and product for each tract. A minimum bid for each species is not published, however, there is a minimum aggregate bid value for each sale, which may or may not be advertised. The bid value must exceed the minimum aggregate sale bid value. Contracts will be awarded for the highest aggregate bid value for each tract. 2. To bid on a particular sale, the contractor must submit bids on DNR Form 2400-49A, TIMBER SALE BID. Bid sheets for each tract are included in this packet. 3. Bids for variable top diameter utilization may be accepted on some sales as indicated. Contractors submitting a bid for variable top diameter utilization, including whole tree harvesting, must clearly indicate on the Timber Sale Bid (Form 2400-49A) the species, utilization specifications, estimated volume and price per unit. The volumes are listed on the Timber Sale Map sheets and on the bid sheets. The Department of Natural Resources weight conversion rates will be used unless indicated otherwise on the map sheet. For those sales that list only one top end diameter, that diameter will be the required utilization specification and no whole tree conversions will be made unless otherwise indicated. The timber sale contract (Form 2400-5) will indicate the utilization specification and bid value you are bidding at. You will be required to harvest and utilize the wood at the utilization specification that you bid. 4. Some tracts may have optional species or areas where bidders may elect to bid on only those species not marked as optional. Bids will be awarded on highest total sale value regardless of whether or not the optional wood was bid. 5. Persons who bid on more than one tract must submit separate envelopes containing the bid for each tract. The envelope should be labeled with the tract number and sale name. 6. Contracts are to be signed within six weeks of letting bids and are considered binding for that period. Sample contracts are available upon request. Contracts may not be sub-contracted or assigned. 7. Winning bidders will have six weeks from the date of the bid opening to submit an acceptable performance bond. A performance bond of a minimum of $1000.00 or 15% of the total sale value, whichever is greater, is required on each sale. The type of performance bond must be determined and submitted at the time of contract signing. The performance bond may be retained for damages or if noncompliance of the sale contract occurs. Upon successful completion of the contract, the performance bond will be returned. If the winning bidder fails to execute the contract and submit an acceptable performance bond, the bidder shall be required to forfeit to the Department an amount equal to 10% of the total bid amount. Failure to forfeit the 10% penalty will result in the bidder being considered ineligible to bid on any state timber sales for a two year period. 8. Bidders in attendance can remove a bid for a tract from consideration as long as it is done prior the reading of the first bid for that tract. Scaling Scaling arrangements on all sales will be made at the time of contract signing and Department conversion rates for weight, peeled, or processed fuelwood will be utilized. Unless a sale is sold by weight, the Department will convert any mill weight scales to cordwood or board feet volume using the Department conversion rates found in the Department’s Timber Sale Handbook. Copies of the Department conversion rates are available upon request. Payment Options Mill Scale Sales Two payment options exist. The Deferred payment option is, generally, the preferred system. The advanced payment option will be required if the contractor fails to pay a deferred payment by the payment due date. Advanced Stumpage Payment Option An advance stumpage will be required before any cutting begins, and as needed throughout the sale period. No wood will be removed from the sale area at any time until it has been paid for. Deferred Stumpage Payment Option (not an option for lump sum sales) The successful bidder may choose the Deferred Payment option. In this case, stumpage payments must be received by the State within 30 days of being billed by the forester. Advance stumpage payment is not required. A 1.5% per 30 days interest penalty will be applied to any stumpage not paid for within 30 days. For example, payment on day 40 for a $5000.00 bill would be 10 days late. The late interest penalty would be calculated as follows: $5000.00 x .015 x 10/30 days = $25.00 and would be added to the balance due. Late payment penalty funds will be paid to the sale but will not reduce the principal owed to the State. In addition to the late interest penalty, failure to pay within the 30 day framework on a sale will result in the contractor having to make advanced stumpage payments for the remainder of the sale. Two such payment breaches, even on separate State sales, will result in the purchaser being required to make advanced stumpage payments on all state timber sales for a two year period. Lump Sum Sales All lump sum timber sales require a stumpage payment prior to cutting. Failure to fully complete performance will result in forfeiture of the performance bond. No refunds of stumpage payments will be made for any reason. Wood left on the sale once the sale is closed out shall revert to the seller. Other Conditions The successful bidder must comply with Wisconsin Worker's Compensation Act, Chapter 102 of Wisconsin Statutes. The successful bidder MUST HAVE WORKERS COMPENSATION, and must provide a Certificate of Insurance indicating the Department of Natural Resources as a "certificate holder" at the time of contract signing. Successful purchasers of DNR stumpage will need to ensure that the logging contractor actually engaged in performance of the contract complies with the 3rd party certification training standard. Criteria for the standard can be found by contacting the Forest Industry Safety & Training Alliance (FISTA). Documentation confirming completion of the training standard will be required prior to contract signing. All timber sales are on state owned land. These lands are 3rd party certified. The purchaser is responsible for maintaining chain of custody for stumpage after leaving the sale area. Wisconsin’s Best Management Practices for Water Quality (BMPs) and Wisconsin’s Forestland Woody Biomass Harvesting Guidelines shall be followed on all DNR timber sales. The contractor must contact the appropriate Department of Natural Resources office a minimum of three working days prior to initiating cutting on a sale contract. Failure to do so will be considered a contract violation. If mixed loads of different valued species are hauled, the stumpage charges will be calculated based on the proportion of the different species as determined by the mill. If the mill fails to assign a percentage to the different valued species the entire load will be charged to the species with the higher stumpage rate. All mixed round wood loads hauled under the Haul Permit system should have separate haul tickets for the different valued species and estimated volumes of each. The Department reserves the right to assign weighted average prices and weight conversions. Contract periods for each sale vary. Extensions will not be granted without a justifiable reason. Justification will be evaluated by the Department of Natural Resources to determine if an extension is warranted. If extended, stumpage increases will be factored according to the timber sale contract. Timber sale contracts may contain other provisions. Sample contracts are available upon request. The Department does not guarantee access to sales across any non-state-owned lands. All successful bidders will agree to comply with the Department’s fire protection requirements. These requirements are listed in the contract. In brief, the contractor will install fire extinguishers on all off-road logging equipment as well as equip all non-turbocharged engines with Department approved spark arrestors. The Department reserves the right to suspend all harvest operations when the risk for wildfires is elevated. Existing State timber sale contracts that have run longer than the original expiration date must be completed before sale operations are started on any tracts offered in this bid opening unless otherwise approved by the Department. Additional information may be obtained from the DNR Office at: 325 W. State Road 70 Grantsburg, WI 54840 (715) 463-2897 With questions on specific tracts call: Gov. Knowles S.F. Mike Wallis 715-463-2898 Tract 4934-1-16 Paul Heimstead 715-485-3518 Namekagon Barrens Kyle Young 715-635-4081 Sawyer Creek Fishery Kyle Young 715-635-4081 Totogatic Wild River Kyle Young 715-635-4081 Crex Meadows Wildlife Area Mark Gossman 715-866-8127 Fish Lake Wildlife Area Mark Gossman 715-866-8127 Sand Creek Fisheries Area Mark Gossman 715-866-8127 GOVERNOR KNOWLES STATE FOREST TIMBER SALE PROSPECTUS Tract # 30-17 A timber sale is being offered in portions of the NENW & SWSW of Section 25, the SESE of Section 26, and the NENE, SENE, and NWSE of Section 35, Township 41 North, Range 17 West, Burnett County, Wisconsin.